December 12, 2006 16:00 ET

Growth and increased profitability for COGECO in 2006

MONTREAL, Dec. 12 - For fiscal 2006, COGECO Inc. (TSX: CGO)
announced improvement in most of its performance indicators. Whereas the cable
sector greatly contributed to this improvement with strong internal and
external growth, results in the media sector were characterized by growth in
radio and stabilization in television.

COGECO's revenue totalled $746.9 million, an increase of 10.6% compared
to the prior fiscal year mainly as a result of the cable sector's revenue
growth of $65.6 million. In addition, operating income before amortization
increased by 8.2% to reach $253.1 million thanks to a $25.5 million
contribution from the cable sector, offset by a $7.4 million decrease in the
media sector. Excluding the net effect of the income tax recovery after
non-controlling interest, net income would have stood at $15.2 million.
However, net income stood at $23.1 million when this element was included.

"COGECO's results, especially those of its cable subsidiary, improved. An
exceptional increase of 62.1% in the number of revenue-generating units (RGU)
was reported, with more than 208,000 coming from Canada, mainly as a result of
the positive impact of the deployment of our Digital Telephony service that
encouraged our customers to subscribe to more than one service. Furthermore,
the acquisition of Cabovisao - Televisao por Cabo, S.A., the second largest
cable telecommunications company in Portugal, contributed to this growth with
the addition of 629,000 RGUs. As for our media subsidiary, the RYTHME FM
network is making its mark in its regional markets while maintaining its
leadership position in Montreal's Francophone market. In addition, TQS
experienced a year of transition and stabilization, thanks to changes made
within the management team and to new and very successful shows", said
Mr. Louis Audet, President and CEO of COGECO, at the Company's annual
shareholders' meeting.

Cable sector

For fiscal year 2006, consolidated revenue increased by $65.6 million to
reach $620 million, consolidated operating income before amortization rose by
$25.5 million, net income amounted to $65.6 million, and to $45.6 million,
when excluding the impact of the income tax recovery.

During fiscal 2006, Canadian operations in the cable sector reported
continuous growth in all services as a result of the positive impact of our
Digital Telephony service. "More than 56% of the clients who subscribed to our
Digital Telephony service in 2006 subscribed to all Cogeco Cable services.
Several enhancements to our offering throughout the year explain such
enthusiasm for Cogeco services," added Mr. Audet.

Media sector

For fiscal 2006, the RYTHME FM network asserted its position throughout
the province of Québec. Furthermore, according to BBM surveys conducted during
fiscal 2006, radio-station 105.7 RYTHME FM in Montréal continued to get good
results with several of its shows making it on the list of most popular
programs. The other radio stations reinforced their position in their
respective markets.

"With respect to TQS, shows such as 'Donnez au suivant', the arrival of
new information and public affairs programs and the second edition of 'Loft
Story' brought in large audiences. In addition, significant changes made to
the management team were beneficial to TQS network operations. And as usual
special attention was given to cost control, in line with our initial plan,"
declared Mr. Audet.

2007: a promising year

Consolidated outlook

For fiscal 2007, COGECO expects to generate revenue exceeding $1 billion
and an increase in operating income before amortization of between 33% and
35%. Free cash flow should reach $15 million to $20 million and net income
should stand at about $15 million, as a result of operating income before
amortization growth.

Cable sector

"For fiscal 2007, all Cogeco Cable employees in Canada and abroad will
aim to increase customer satisfaction through improved customer service and
enhanced product and service offerings. We will maintain tight controls over
the cable subsidiary's costs and we will work to continue to improve our
business processes. With respect to our new Portuguese subsidiary, the
Cabovisao integration plan is well under way and we believe Cabovisao will
contribute to the creation of value for COGECO's shareholders as early as this
fiscal year," concluded Mr. Audet.

Media sector

In September 2007, TQS celebrated its 20th anniversary and unveiled a new
image as well as strong programming which includes standard favourites and
promising new shows. New shows, new hosts and standard favourites will drive
TQS's performance. Since it began, Loft Story III enjoyed large audiences.
Loft Story III and other original shows will help sustain TQS's viewership. As
for radio, management will focus on maintaining leadership in the key Montreal
market while continuing to improve performance in all regional markets.


COGECO is a diversified communications company. Through its Cogeco Cable
subsidiary, COGECO provides about 1,556,000 revenue-generating units (RGU) to
approximately 1,477,000 homes passed in its Canadian service territory and
629,000 RGUs to approximately 826,000 homes passed in its Portuguese service
territory. Through its two-way broadband cable networks, Cogeco Cable provides
its residential and commercial customers with analog and digital video and
audio services, High Speed Internet access as well as Telephony services.
Through its Cogeco Radio-Television subsidiary, COGECO holds a 60% interest
and operates the TQS network, six TQS television stations, and three French
CBC-affiliated television stations in partnership with CTV Television. Cogeco
Radio-Television also wholly owns and operates the RYTHME FM radio stations in
Montréal, Québec City, Trois-Rivières and Sherbrooke as well as the
93.3 station in Québec City. COGECO's subordinate voting shares are listed on
the Toronto Stock Exchange (CGO). The subordinate voting shares of Cogeco
Cable are also listed on the Toronto Stock Exchange (CCA).